The mortgage interest deduction, a sacrosanct tax break for decades, no longer is so generous. And the federal tax offset for state and local taxes, another nigh-untouchable piece of the tax code, has been pared back.

(Mountain Lakes, NJ, February 15, 2018) — Over the objections of the National Association of Realtors, Congress in late 2017 passed a tax reform
package championed by President Donald Trump.
Realtors in high-cost, high-tax areas such as New York,
California, Maryland, and Massachusetts say they expect
less demand and falling prices as a result.

However, many brokers in Florida and other relatively
affordable, low-tax states welcomed the news.

The plan nearly doubles the standard deduction starting
in 2018, a change that means even fewer taxpayers will gain a benefit
from the mortgage interest deduction.

A second effect comes in the form of a less generous
offset for state and local taxes, or SALT. In states with steep property
taxes and high income taxes,
homeowners could deduct their local tax payments from
their federal tax bills.
The new tax plan limits that amount to $10,000.

The housing industry dodged a bullet on a third tax
break. The tax plan originally included a provision to
lengthen the period of ownership required to qualify
for an exemption from the capital gains tax. The
minimum holding time of two years would have been
extended to five years.

Analysis and commentary from broker/owners across the
United States appears in the February issue of Real
Estate Broker’s Insider newsletter.